Bailout under threat as Greece goes back to polls

As investors dashed to safe havens, German ten-year bond yields fell to a record low of 0.565 per centAction Press/Rex Features

European stock markets dropped after Greece failed to elect a president, forcing early elections, in a move that some fear could endanger the debt-ridden country’s international bailout.

Greece’s parliament today failed for a third time to elect a president, as the government candidate fell short of the votes required.

Under Greek law, the parliament will have to be dissolved in the next ten days and a national election must now be called, leaving financial markets and Greece’s European Union partners facing weeks of uncertainty that could undermine fragile signs of economic recovery and derail its public finances. A general election is now expected to be held by early February.

The Greek stock market plunged more than 10 per cent after the failed vote, while the…